Billet
By beginning of week 22, Iran billet market experienced a significant rise in price as exchange rate shoot up. Billet size 150 mm was priced at Rials 10,800,000-10,900,000/MT on truck in Anzali including 5% VATon Saturday but sellers stopped offering and the price increased to Rials 11,300,000 /MT on the same day, but surely without any deal.
By Sunday, when ex-rate dropped, billet prices decreased to Rials10, 900,000/MT again. Market inventory has decreased and there are problems in importing billet, so traders are not in a hurry to offer; besides buyers are not in hurry to deal too.
Exporting billet to Iran is facing difficulties so import level is decreasing. Besides sections supply level in IME is increasing and investors are becoming more interested in finished products despite raw material and semi finished products.
(Ex-rate; official: Rials 12,260/ 1USD , Market: Rials 17,200 / 1USD)
Long products
Long products market was upward by beginning of the week as ex-rate increased. Debar price was up by Rials500, 000/MT, merchant bar by Rials 200,000/MT and I-beam by Rials 3,000,000/MT. By Sunday as debar supply level in IME increased, its price became stable, I-beam price dropped, but merchant bars were again up by Rials 100,000-150,000/MT. Prices were up and down till Wednesday which was the last working day of the week.
During last 4 months, long products import level has been limited and traders have become more interested in buying from domestic market. Exchange rate and sales prices in IME have immediate effect on prices. Inventory levels has reached the bottom, so any change in prices influence market and transactions levels. Traders are preventing from booking high tonnages, so production level has dropped too. At the moment market sentiment is not clear, everyone is holding waiting to see the end of political negotiations.
(Ex-rate; official: Rials 12,260/ 1USD , Market: Rials 17,200 / 1USD)
Flat products
HRC 2 mm thickness was priced at Rials10,300,000/MT on truck in Anzali including 5% VAT at the beginning of last week, then dropped by Rials 100,000-200,000/MT by middle of the week and went back to last level till end of the week. HRC import level during last Iranian month (20 Apr-20 May ) has dropped by 100,000 MT compared to same month last year and the problem for opening LC has not finished yet, so some market participants expect some rises in HRC price from third week of June. At the other hand cheap imported pipes are increasing the pressure on Flat products market and besides demand level is low. HRC thickness 3-6 mm price was almost stable during week 22 in Iran.
CRC market had a quiet week; prices were up on Saturday but became stable from Monday onward. Import level is limited and some sizes of CRC are in shortage at ports, but increasing supply level in IME and low demand have hold market in balance.
HDG market was silent too, but there is some expectations about price increase for some sizes in coming weeks as supply level has dropped. Generally flat products market is quiet and market participants are working cautiously.
(Ex-rate; official: Rials 12,260/ 1USD , Market: Rials 17,200 / 1USD)
Iran Steel Service Center